Brooks Automation has signed a definitive agreement to purchase Dynamic Micro Systems Semiconductor Equipment GmbH ("DMS"). DMS, based in Radolfzell, Germany, offers automated cleaner and stocker products for wafer and reticle carrier devices used in the global semiconductor front-end markets. The cash purchase price is about $31 million, dependent on an adjustment for working capital at closing. The purchase is likely to close within the next two weeks upon approval of customary closing conditions.
Steve Schwartz, CEO of Brooks, stated, "This acquisition meaningfully expands our capabilities in front-end semiconductor automation as the DMS products are complementary to Brooks' product offerings. A significant proportion of DMS revenues are generated from product sales to large IC manufacturers, further strengthening our position with this important customer base. DMS' leading automated cleaner and stocker solutions combined with Brooks' existing automation systems will allow us to deliver best of breed systems that address our customers' cleanliness and productivity requirements. This transaction furthers our strategy of gaining share in our core semiconductor markets, while we continue to expand our presence in adjacent markets and grow our life sciences business."
Dr. Schwartz continued, In addition to immediately increasing market share in the semiconductor sector, this strategic transaction adds tremendous expertise in the area of clean material handling and transport to minimize the detrimental effects of airborne molecular contamination (AMC). Clean storage and transportation of materials is becoming ever more critical in enabling IC makers to achieve yield targets at and below 20nm device generations. The combination of expertise and technology from DMS combined with our own internal capabilities give us a substantial resource that will help us develop the best products for technology challenges that are on the horizon .
Lindon Robertson, Chief Financial Officer of Brooks, stated, "This transaction represents another step in our continuing strategic three-year transformation, aligning our portfolio of assets around leadership capability in automation and cryogenic solutions. DMS brings to Brooks new industry technology, an opportunity for continued growth, synergies with our core business, and an attractive ROIC in a relatively short timeframe."
DMS produced about $28 million in revenue for calendar 2013 and because of its many synergies with Brooks, management anticipates it to become accretive to Brooks' earnings by the first half of fiscal 2015. The Company stated that further details associated to the purchase will be provided on the regularly scheduled second quarter earnings conference call on May 8, 2014.